Suppose nile expects 452 in eps next year if it does not go, Ask an Expert

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Suppose Nile expects $4.52 in EPS next year if it does not go through with the investment and associated financing. As a shareholder, to satisfy its funding needs for the investment opportunity, do you prefer the company issues $100 million in new debt at an interest rate of 7%, or issues 2 million shares of equity at a target price of $50?

Show supporting calculations, and provide arguments and potential counter-arguments for your recommendation.

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Category:- Basic Finance
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